According to a document filed with the Securities and Exchange Commission, UBS has ditched an auxiliary consultant for a $ 113 million real estate fund.
Brookfield Asset Management has been removed from PACE Global Real Estate Securities Investments fund, while MFS remains the sole sub-administrator of the fund. Brookfield was involved in implementing the strategy with MFS, with each firm being responsible for half of the fund’s assets.
UBS and Brookfield did not immediately respond to requests for comment on the reasons for the changes in the fund, which has a 1.2% expense ratio.
Jason Bane and Bernhard Krieg has been co-manager of the Brookfield fund allocation since 2009. Rick Gable, which has an AAA rating with Citywire, has been the only MFS manager at the fund since March.
UBS changed my list of my own selectors on this and about a dozen other funds from the PACE range in June.
The latest UBS prospectus admits that the fund had the worst annualized return in a decade last year, as well as the worst quarter: the fund fell 28.7% in the first quarter of 2020, a year after its best growth in recent years in the first quarter. 2019.
Consequently, the fund’s assets have declined since they stood at $ 137 million three years ago. Despite a relatively high 2019 and recovery in 2021, the fund has struggled with its weak 2020 and an estimated $ 42 million net churn over the past three years, according to Morningstar data.
The fund’s strategy was to invest in REITs and similar securities around the world, with the top 10 holdings accounting for roughly half of its portfolio. As of June 30, US assets accounted for over 50% of the fund’s portfolio, with Japan and Hong Kong being the next largest.